All Forum Posts by: Wendell De Guzman

Joseph Montes, great job & welcome to BP.
Getting good tenants is the next crucial thing you need to do. If you get a bad tenant for your property, no matter how good it is, or how low you bought it will be a bad investment if you get a bad tenant.

You need to prescreen them very well. I use a Point-System that works wonders. Email me and I will email that to you.

Also, I suggest you learn how to do "subject to's" so you can buy more rental properties without using your credit.

Rob Henry, thanks. I told them I won't use them.

crowbar :-)

Jake Leicht, Jon Holdman, Steve Babiak, thanks for your quick replies.

I am doing my due diligence to verify the product and yes, I understand the FMV is more relevant than UPB.

I got an email about 489 NPNs being sold at 18 cents to the dollar (based on UPB). Sales Price is $5.1M.

What do I do with this? More specifically...

1) How do I control this? They need POF for that amount which right now I don't have. Anyone here has $5M POF (preferably based on a verifiable bank account)?
2) How do I vet the seller (challenge is the daisy chain of 'joker-brokers') to verify the tape is legit? Probably, this should be the first question.
3) How do I sell this and make money with this? I am willing to partner with anyone who can help get me through my first wholesale NPN...

Thank you in advance for your help BP'ers.

Michael D., yes. We can write checks out of our tenants' checking accounts. It's our standard procedure and it works wonders! You need a CheckWriter software, the right Authorization letter signed by your tenants and blank checks you can get at Office Depot.

Luke Miller, you can also look into "subject to's" as a way for you to get more properties using none of your credit.

Search it by keywords: "shortsale", "handyman special", "as is", etc.

Tom Goans, I agree with you 100%.
I tell beginning real estate investors, "You can buy and sell houses in any market, but how you buy and sell will depend on the market." What the market can pay is what determines the numbers.

When I started in real estate investing, I followed the "70% rule" when acquiring a house to wholesale/rehab. That is what the "gurus" said. After making 50 offers and not getting an offer accepted, I decided to find out what my market (at that time - 2003) was willing to pay for.

The gurus were wrong. The 70% rule was too conservative. I increased it to 75% and I got offers accepted and I was able to wholesale deals.

So to your point, the numbers may seem good but the question is "Good for whom?" or "Good for what market?"

Lesson is therefore: Learn the market first and invest by the numbers second.

Doug Pretorius, agree with you. I have the same experience for subject to's.